Fortescue (ASX:FMG) share price climbing despite cost blowout rumours

The Fortescue Metals Group Limited (ASX: FMG) share price has climbed 1.37% higher in early trade today despite reports of cost blowouts at its Iron Bridge Magnetite Project.

Why is the Fortescue share price under pressure?

According to a report in The Australian, Fortescue is looking at revising its project costs. Industry sources quoted by the paper say the US$2.6 billion project could see costs increased by 25%.

The report noted that Fortescue has not yet agreed to a revised budget with its project partner, Formosa Plastics. The Taiwanese plastics company owns a 31% stake in the project.

However, it’s worth noting Fortescue said in October that the project was on budget and scheduled to deliver its first shipment in…